MODULE 3: Accounting and Finance

Unit 3.2: Financial management

Coordinators:  Batkhuyag Myagmar, Mongolian University of Life Sciences

Lecturer:  Undargaa L., Mongolian University of Life Sciences, a Guest lecturer from the List of teachers within the AGRIMBA network (Annex 1)

Financial management for agribusiness

To improve theoretical knowledge, applied skills in finance.

• Financial Statement Analysis
• Fundamental Concepts of Financial Management
• Short-term Financial Planning
• Long-term Financial Planning
• Leverage and Capital Structure
• Working Capital Management

Lectures (8 hours)

Interaction with students (4 hours)

Self-guided group work

1. Relations of Financial Statements; Reading Financial Performances of Business and Ratio Analysis (Profitability, Liquidity, and Leverage Analysis); Du-Pont Scheme and Bankruptcy Diagnosis
2. Risk and Return; Time Value of Money; Valuation Approaches; Discounted Cashflow Method and Its Use in Security Valuation
3. Cashflow Projection and Pro-forma Financial Statements; Sales Forecasting.
4. Capital Budgeting and Its Similarities with Project Management; Estimating Relevant Cashflows of Capital Projects; Capital Budgeting Techniques (Payback Period (PBP), Net Present Value (NPV), Internal Rate of Return (IRR) and Profitability Index (PI))
5. Fixed and Variable Costs and Their Effect on Profit; Operating, Financial and Total Leverages; Capital Structure and Leverages
6. Working Capital Investment Management (Relax, Moderate, and Restrict Investment Approaches); Working Capital Financing Management (Aggressive, Moderate and Conservative Financing Approaches)

Carrying out of financial management problems and evaluation tests

Written and oral exam

Financial Management in Agriculture, 7th edition, 2011, Pearson, Peter Barry, and Paul Ellinger